Omnibus Trading Account(OTA)
- Qualifications of investors
- Foreign investors and offshore overseas Chinese are required to register their identification number and open a securities trading account.
- Domestic institutional investors (including domestic securities investment trust funds, government agencies, domestic banks, insurance companies and group enterprises)
- Discretionary investment customers
● After May 25, 2009
All investors (except the investors from Mainland Area) can trade through an omnibus trading account.
- Account Opening
Each broker (head office & branches) can have two OTAs under their own names. One is for domestic investors (securities trading account number: 885555+check code); the other is for foreign investors (securities trading account number: 995555+check code). The account identification code for domestic securities firms' omnibus trading accounts is "600"; the account identification code for the omnibus trading accounts of Taiwan branch offices of foreign securities firms is "403".
If an investor has authorized a trader to conduct trades and handle allocation of trade prices and volumes, it shall provide a power of attorney to specify the allocation of trade price and volume and relevant authorized matters. However, where a same authorized trader is approved by offshore overseas Chinese or foreign investors, domestic funds, or units of a same group, the power of attorney may be waived, and the authorized trader shall provide a statement specifying the investors’ ID numbers or uniform invoice numbers, names, and other relevant information.
- Transaction Type
The OTA can be used in regular, after-market fixed-price, odd-lot and margin trading. Investors are able to use the borrowed securities to trade through the omnibus trading account.
● After May 25, 2009
- Investors can do the block trades which are settled on T+2 through OTA. Only the OTA should meet the size requirement of the block trade while each investor through OTA is exempt from the size requirement.
- Odd lots of different investors could be combined for trading through the OTA.
- Trading Allocation
- Securities firms should submit the post-allocation transaction statement to the TWSE between 3 pm and 6 pm on T-day. However, if the securities firm has not yet been able to complete the transaction allocation operations for an omnibus trading account with foreign principals (securities trading account number: 995555+check code), it may by 6 pm of T-day report and preserve the information not yet allocated, under the original omnibus trading account, and must report a partial adjustment of allocation with respect to the transaction information by 6 pm of T+1 day.
- If the securities firm has not yet been able to complete the transaction allocation operations by 7 pm on T-day, the TWSE will automatically preserve the information not yet allocated, under the original omnibus trading account. The securities firm must report a partial allocation adjustment with respect to the transaction information by 6 pm of T+1 day. On T+1 day, the securities firm should complete the transaction allocation operations and cannot preserve the information not yet allocated.
- By 6 pm of T+1 day, a securities firm may report a partial allocation adjustment with respect to the transaction information in accordance with operational needs, and shall report the itemized details of the trading orders of each principal or authorized trader to the TWSE.
- The price allocation may be conducted according to the agreement between the securities firm and its customers without being subject to allocation at average price.
- Securities firms can report a correction of the individual account to the omnibus account or report a correction of the omnibus account to the individual account on T-day and T+1 day.
- Securities firms, pursuant to the authorized trader's directions, may combine regular and after-hours fixed-price trading for allocation to investors as odd-lot or unit shares. In addition, allocations in unit shares and in odd lots shall be reported separately.
- After securities firms receive an order for a block trade through an omnibus account, the allocation information shall be reported separately along with the allocation information for regular, after-hours fixed-price, and odd-lot trades, and is not subject to the requirements of the Block Trading trade volumes, types, and amounts. However, non-OTA investors can not be allocated at average price with the block trade through OTA.
Investors who trade through OTA still need to settle through their own accounts.